Banks fear fresh wave of bad loans in the economy

Banks fear fresh wave of bad loans in the economy

The main fear for bank management boards, which have been observing the torrential developments in the economy from the coronavirus with astonishment, is the risk of a new generation of bad loans being created.

Ahead of the announcement of government measures to support the economy, bank managers are monitoring conditions and are in constant touch with corporate representatives of all sectors.

The deterioration of liquidity in crucial sectors such as tourism is the immediate effect banks expect to see, and although for the time being there are no signs of any fresh delays in loan repayments, their emergence is believed to be simply a matter of time.

The effects on the economy will be a chain reaction, as besides tourism being the first victim, air transport, trade and the supply chain will also feel a significant impact, with consumption not far behind.

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